Land and Buildings Transaction Tax (Scotland) Act 2013 Schedule 11 paragraph 24

Conditions for paragraph 24 to apply

Paragraph 24 of Schedule 11 sets out the conditions under which the withdrawal of group relief or reconstruction/acquisition relief may be triggered, by identifying which property interests are relevant at the time a disqualifying event occurs.

• This paragraph applies when, at the relevant time (the point at which a disqualifying event occurs), the acquiring company or a relevant associated company still holds a chargeable interest in land or buildings.
• The chargeable interest in question must either be the one that was originally transferred to the acquiring company under the relieved transaction, or an interest that has been derived from that original transfer.
• The interest must not have been subsequently sold on at market value in a chargeable transaction where relief under Part 2 (group relief) or Part 3 (reconstruction or acquisition relief) of Schedule 11 was available but was deliberately not claimed.
• In effect, the paragraph targets situations where the property (or a derived interest) remains within the group or associated structure without having passed through a genuinely taxed, arm's-length transaction since the original relieved transfer.